Delek US Holdings, Inc., which operates an oil refinery in El Dorado, said this week that it entered into an agreement to purchase a biodiesel production facility and related assets based in Cleburne, Texas from EQM Technologies & Energy, Inc., for approximately $5.3 million.
This transaction is expected to close on or before January 23.
The biodiesel facility has a production capacity of approximately 12 million gallons per year. Delek US intends to spend approximately $3 million in capital expenditures during 2013 to improve the feedstock flexibility of the facility. At present, the facility produces biodiesel exclusively for Delek US and its affiliates under a tolling agreement. The tolling agreement will terminate upon completion of the transaction.
"We ended 2012 with approximately $600 million of cash and a net cash position of approximately $240 million, which provides us the ability to take advantage of opportunities to grow and expand our operations," said Uzi Yemin, chairman, president and chief executive officer of Delek US. "This acquisition further integrates our operations by improving our feedstock flexibility for blending biodiesel at our Tyler refinery. We will continue to explore opportunities to grow our business and return value to our shareholders during 2013."
Delek US Holdings, Inc., has assets in petroleum refining, convenience store retailing and logistics. The refining segment consists of refineries operated in Tyler, Texas and El Dorado with a combined production capacity of 140,000 barrels per day. The retail segment supplies fuels and merchandise through a network of approximately 372 company-operated convenience store locations operated under various names.